Despite Drop In 4Q Profits, St. Jude Tops Wall Street Forecasts

NEW YORK (AP) — St. Jude Medical Inc.'s fourth quarter profit fell 54 percent on a mix of lackluster sales and higher expenses, but its adjusted results still beat expectations.

The medical device maker earned $113 million, or 39 cents per share, down from $245 million, or 84 cents per share, a year ago. Earnings, adjusted for one-time gains and costs, came to $1.02 per share.

The results topped Wall Street expectations. The average estimate of 18 analysts surveyed by Zacks Investment Research was for earnings of $1.01 per share.

Revenue rose 1 percent to $1.45 billion in the period, missing Street forecasts. Twenty analysts surveyed by Zacks expected $1.48 billion.

Sales were strongest in the U.S., rising 9 percent to $739 million, a stronger U.S. dollar cut into international sales, which dropped 7 percent to $708 million.

Sales of implantable heart devices and pacemakers, the company's largest category of devices, fell 15 percent to $580 million.

For the current quarter ending in April, St. Jude expects its per-share earnings to range from 87 cents to 89 cents.

The St. Paul, Minnesota-based company expects full-year earnings in the range of $3.95 to $4.05 per share.

St. Jude shares have declined 12 percent since the beginning of the year, while the Standard & Poor's 500 index has dropped almost 7 percent. The stock has declined 17 percent in the last 12 months.

(© Copyright 2016 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)